Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000 forplacing a long distance call o make the order and P4,000 for delivering the order to the company warehouse.Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost.4.(a) What is the EOQ?1,200b. 1,000a.С.800d. 900(b) What is the total carrying cost?а. 650,000525,000b.550,000d. 625,000с.(c) Whats is the total ordering cost?650,000b. 525,000с. 550,000d. 625,000а. 3. XYZ has developed the following data from its Material ASafety stockAverage (normally) daily useMaximum daily useMinimum daily use280200240180EOQ1,000Cost of placing an orderWorking days per yearP20250 days6 daysLead time(b) What is reorder point(c) What is absolute maximum inventory?(d) What is the normal maximum inventory?(e) What is the cost of carrying an inventory per unit per year?(f) What is the average inventory?

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4. Combate uses 100,000 units of Material X Annually its production. Ordering cost consists of P1,000 for placing a long distance call o make the order and P4,000 for delivering the order to the company warehouse. Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost.

4. Combate uses 100,000 units of Material X Annually its production. Ordering cost consists of P1,000 for placing a long distance call o make the order and P4,000 for delivering the order to the company warehouse. Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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